The Minority in Parliament has issued a strong appeal to the government, urging it to undertake a substantial restructuring of the financially troubled National Investment Bank (NIB) to prevent the potential liquidation of the bank.
Recent reports have suggested the possibility of the Agricultural Development Bank (ADB) acquiring NIB, which currently carries liabilities exceeding GHc2 billion.
During a press conference held on Thursday, September 28, Isaac Adongo, the Ranking Member of Parliament’s Finance Committee, expressed concerns about the potential consequences of allowing a systematically important bank like NIB to collapse.
Adongo emphasized that there is a viable alternative to the bank’s predicament, proposing that the government restructure NIB’s balance sheet by converting all NIB debts owed to the government into equity.
“We said that the government should just restructure the balance sheet of NIB to swap all the NIB debts that it owes the government and give the government equity, but the government says it doesn’t have money to capitalize the bank. However, it has given 500 million bonds to NIB and 800 million in debt to NIB, which together would provide 1.2 billion. Commit to say that is your commitment to recapitalization, so we issue shares for you,” Adongo explained.
Adongo questioned the government’s motives behind considering the liquidation of NIB, suggesting that there might be hidden agendas behind their actions. He proposed that the government seek assistance from the Minority, who are willing to provide a team of experts to work independently and revitalize NIB without interference.
“How on earth can you kill such a bank, ladies and gentlemen unless there is an ulterior motive? They should come to the Minority; we will give them a group of people to work for free, with a clear mandate, no interference, and NIB will be the most viable bank, the most well-capitalized bank, and the most liquid bank. It is clear that it is not about the interest of NIB.”
The Minority has also stated that it will only support the approval of the $250 million World Bank facility for the financial stability fund if priority is given to struggling state banks. The fate of NIB and its potential acquisition by ADB continues to be a subject of significant debate and concern within the financial sector in Ghana.